At this point you'll notice the application is in a weird state where the context menu is visible, but it no longer has focus, the document viewer has focus (i.e. press the down arrow and you'll see the document viewer has the focus) and the context menu is in a weird state where you can't select items.

Issue #2:

In the previous build actually, the Cut command (or the command you pressed in step 4) would have been executed. This wasn't correct behavior either (according to Office).

You'll notice if you repeat the steps in Word, the command you mouse up on (the Copy command in this case) will be executed.

Cool. I was seeing issue #2 in ribbon style 2007 (non scenic) in the orb menu (non backstage view style). The reason I noticed it was that sometimes you misclick on an item and catch it before you release the button, but the wrong command was getting executed.

The latest build of this product (2017.2 build 0664) was released 1 month ago,
which was after the last post in this thread.